NIFTY NEARLY ACHIEVES 34-DMA TARGET; 12300 IS IMMEDIATE HURDLE

NIFTY NEARLY ACHIEVES 34-DMA TARGET; 12300 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices fell 0.2%-0.5% after the Centers for Disease Control confirmed the first U.S. case of a mysterious coronavirus that has infected hundreds in China and killed 6 so far.

Shares of airline, casino and hotel companies tumbled amid fears that the coronavirus outbreak would dent international travel.

Sentiment also soured after Treasury Secretary Steven Mnuchin said that a phase two trade deal between China and the U.S. may not remove all existing tariffs. Also, Trump said he is “absolutely serious” about imposing tariffs on European cars if a trade deal with the region cannot be struck.

Brent crude fell 65 cents to $64.55 a barrel while WTI crude settled down 20 cents at $58.34.

In Europe, DAX was flat while FTSE and CAC fell 0.5% each. UBS shares fell by 4.5% after the Swiss lender missed its key 2019 profit targets and cut its midterm guidance.

AT HOME

Benchmark indices fell half a percent, extending the losing streak to second straight day and closing at the lowest level since 8th January. Sensex settled at 41323, down 205 points while Nifty lost 54 points to finish at 12169. BSE mid-cap index fell 0.2% while small-cap index ended flat. BSE Power and Realty indices tumbled 1.5% and 1.4% respectively, becoming top losers among the sectoral indices while Telecom index soared 2.1%, becoming top gainer, followed by 0.1% higher Teck and Energy indices.

FIIs net sold stocks, index futures and stock futures worth Rs 50 cr, 552 cr and 1018 cr respectively. DIIs were net sellers to the tune of Rs 308 cr.

Rupee depreciated 10 paise to end at 71.20/$.

ZEE Entertainment's Q3 numbers slip on all fronts. Revenue fell 5.5% y-o-y to Rs 2048 cr, EBITDA slipped 25% to Rs 565 cr, Margin fell 720 bps to 27.6% and net profit plunged 38% to Rs 349 cr.

OUTLOOK

Today morning, Nikkei is up 0.2%, Hang Seng is flat while Shanghai is off 1.3%. SGX Nifty is suggesting a marginally higher start for our market.

Readers would recall that we had turned our view on Nifty negative after 12278 was broken and had given target of 34-DMA placed around 12150 in yesterday's report.

Nifty touched a low of 12162 before closing at 12169, nearly achieving 12150 target and vindicating our view.

12162, the low made yesterday, which also coincides with the 34-DMA, continues to be immediate support, upon breach of which, 12095, the 67% retracement level of the recent 11930-12430 upmove, would be the next support to eye.

Immediate hurdle on the hourly chart has moved lower to 12300, with the stop-loss of which, trading shorts can be held on to.

L&T, Asian Paints and Axis Bank will report their quarterly earnings today.